x | QUARTERLY REPORT PURSUANT TO 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT |
| UNITED BANCORP, INC. | |
| | |
| (Exact name of registrant as specified in its charter) | |
Ohio | | 34-1405357 |
(State or other jurisdiction of | | (IRS Employer Identification No.) |
incorporation or organization) | | |
201 South Fourth Street, Martins Ferry, Ohio 43935-0010 |
(Address of principal executive offices) |
(740) 633-0445 |
(Registrant’s telephone number, including area code) |
N/A |
(Former name, former address and former fiscal year, if changed since last report) |
Large accelerated filer ¨ | Accelerated filer ¨ | Non-accelerated filer ¨ | Smaller Reporting Company x |
PART I - FINANCIAL INFORMATION | | |
| | |
| Item 1 Condensed Consolidated Balance Sheets | 3 |
| | |
| Condensed Consolidated Statements of Income | 4 |
| | |
| Condensed Consolidated Statements of Comprehensive Income | 5 |
| | |
| Condensed Consolidated Statements of Cash Flows | 6 |
| | |
| Notes to Condensed Consolidated Financial Statements | 8 |
| | |
| Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations | 33 |
| | |
| Item 3 Quantitative and Qualitative Disclosures About Market Risk | 41 |
| | |
| Item 4 Controls and Procedures | 42 |
| | |
PART II - OTHER INFORMATION | | |
| | |
| Item 1 Legal Proceedings | 43 |
| | |
| Item 1A Risk Factors | 43 |
| | |
| Item 2 Unregistered Sales of Equity Securities and Use of Proceeds | 43 |
| | |
| Item 3 Defaults Upon Senior Securities | 43 |
| | |
| Item 4 Other Information | 44 |
| | |
| Item 5 Exhibits | 44 |
| | |
SIGNATURES | 45 |
2 | ||
| | September 30, | | December 31, | | ||
| | 2013 | | 2012 | | ||
| | (Unaudited) | | | | ||
Assets | | | | | | | |
| | | | | | | |
Cash and due from banks | | $ | 5,112 | | $ | 4,889 | |
Interest-bearing demand deposits | | | 36,106 | | | 70,219 | |
Cash and cash equivalents | | | 41,218 | | | 75,108 | |
| | | | | | | |
Available-for-sale securities | | | 27,844 | | | 34,853 | |
Held-to-maturity securities | | | 2,294 | | | 2,768 | |
Loans, net of allowance for loan losses of $2,965 and $2,708 at September 30, 2013 and December 31, 2012, respectively | | | 295,144 | | | 293,774 | |
Premises and equipment | | | 10,954 | | | 10,385 | |
Federal Home Loan Bank stock | | | 4,810 | | | 4,810 | |
Foreclosed assets held for sale, net | | | 2,266 | | | 1,810 | |
Intangible assets | | | 215 | | | 305 | |
Accrued interest receivable | | | 997 | | | 1,076 | |
Deferred income taxes | | | 1,304 | | | 887 | |
Bank-owned life insurance | | | 12,226 | | | 11,034 | |
Other assets | | | 809 | | | 1,544 | |
Total assets | | $ | 400,081 | | $ | 438,354 | |
| | | | | | | |
Liabilities and Stockholders’ Equity | | | | | | | |
Liabilities | | | | | | | |
Deposits | | | | | | | |
Demand | | $ | 166,516 | | $ | 183,355 | |
Savings | | | 68,334 | | | 67,236 | |
Time | | | 82,634 | | | 99,825 | |
Total deposits | | | 317,484 | | | 350,416 | |
| | | | | | | |
Short-term borrowings | | | 10,529 | | | 10,681 | |
Federal Home Loan Bank advances | | | 27,146 | | | 32,439 | |
Subordinated debentures | | | 4,000 | | | 4,000 | |
Interest payable and other liabilities | | | 3,808 | | | 4,192 | |
Total liabilities | | | 362,967 | | | 401,728 | |
| | | | | | | |
Stockholders’ Equity | | | | | | | |
Preferred stock, no par value, authorized 2,000,000 shares; no shares issued | | | | | | | |
Common stock, $1 par value; authorized 10,000,000 shares; issued 2013 5,375,304 shares, 2012 5,375,304 shares | | | 5,375 | | | 5,375 | |
Additional paid-in capital | | | 17,656 | | | 17,425 | |
Retained earnings | | | 19,430 | | | 18,544 | |
Stock held by deferred compensation plan; 2013 205,651 shares, 2012 195,965 shares | | | (1,860) | | | (1,778) | |
Unearned ESOP compensation | | | (1,700) | | | (1,823) | |
Accumulated other comprehensive loss | | | (1,687) | | | (1,087) | |
Treasury stock, at cost | | | | | | | |
2013 12,497 shares, 2012 2,496 shares | | | (100) | | | (30) | |
| | | | | | | |
Total stockholders’ equity | | | 37,114 | | | 36,626 | |
| | | | | | | |
Total liabilities and stockholders’ equity | | $ | 400,081 | | $ | 438,354 | |
3 | ||
| | Three months ended | | Nine months ended | | ||||||||
| | September 30, | | September 30, | | ||||||||
| | 2013 | | 2012 | | 2013 | | 2012 | | ||||
| | | | | | | | | | | | | |
Interest and dividend income | | | | | | | | | | | | | |
Loans, including fees | | $ | 3,997 | | $ | 4,158 | | $ | 11,966 | | $ | 12,537 | |
Taxable securities | | | 78 | | | 151 | | | 226 | | | 605 | |
Non-taxable securities | | | 75 | | | 146 | | | 309 | | | 501 | |
Federal funds sold | | | 33 | | | 23 | | | 109 | | | 51 | |
Dividends on Federal Home Loan Bank stock and other | | | 50 | | | 70 | | | 163 | | | 175 | |
| | | | | | | | | | | | | |
Total interest and dividend income | | | 4,233 | | | 4,548 | | | 12,773 | | | 13,869 | |
| | | | | | | | | | | | | |
Interest expense | | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | | |
Demand | | | 25 | | | 28 | | | 79 | | | 89 | |
Savings | | | 8 | | | 18 | | | 23 | | | 53 | |
Time | | | 345 | | | 512 | | | 1,139 | | | 1,660 | |
Borrowings | | | 372 | | | 394 | | | 1,134 | | | 1,176 | |
| | | | | | | | | | | | | |
Total interest expense | | | 750 | | | 952 | | | 2,375 | | | 2,978 | |
| | | | | | | | | | | | | |
Net interest income | | | 3,483 | | | 3,596 | | | 10,398 | | | 10,891 | |
| | | | | | | | | | | | | |
Provision for loan losses | | | 354 | | | 268 | | | 1,013 | | | 769 | |
| | | | | | | | | | | | | |
Net interest income after provision for loan losses | | | 3,129 | | | 3,328 | | | 9,385 | | | 10,122 | |
| | | | | | | | | | | | | |
Noninterest income | | | | | | | | | | | | | |
Service charges on deposit accounts | | | 627 | | | 500 | | | 1,706 | | | 1,516 | |
Realized gains on sales of loans | | | 5 | | | 5 | | | 55 | | | 14 | |
Realized losses on sales of other real estate and repossessed assets | | | | | | | | | (15) | | | (6) | |
BOLI benefit in excess of surrender value | | | 935 | | | | | | 935 | | | | |
Other income | | | 224 | | | 218 | | | 647 | | | 616 | |
| | | | | | | | | | | | | |
Total noninterest income | | | 1,791 | | | 723 | | | 3,328 | | | 2,140 | |
| | | | | | | | | | | | | |
Noninterest expense | | | | | | | | | | | | | |
Salaries and employee benefits | | | 1,971 | | | 1,713 | | | 5,386 | | | 5,035 | |
Occupancy and equipment | | | 468 | | | 477 | | | 1,393 | | | 1,372 | |
Professional services | | | 91 | | | 197 | | | 499 | | | 545 | |
Insurance | | | 74 | | | 69 | | | 211 | | | 193 | |
FDIC insurance | | | 75 | | | 73 | | | 231 | | | 215 | |
Franchise and other taxes | | | 126 | | | 123 | | | 381 | | | 377 | |
Advertising | | | 96 | | | 160 | | | 321 | | | 316 | |
Stationery and office supplies | | | 46 | | | 61 | | | 136 | | | 173 | |
Amortization of intangibles | | | 29 | | | 29 | | | 89 | | | 89 | |
Provision for losses on foreclosed real estate | | | 220 | | | 26 | | | 230 | | | 78 | |
Other expenses | | | 638 | | | 554 | | | 1,698 | | | 1,503 | |
| | | | | | | | | | | | | |
Total noninterest expense | | | 3,834 | | | 3,482 | | | 10,575 | | | 9,896 | |
| | | | | | | | | | | | | |
Income before federal income taxes | | | 1,086 | | | 569 | | | 2,138 | | | 2,366 | |
| | | | | | | | | | | | | |
Federal income taxes | | | 7 | | | 118 | | | 125 | | | 423 | |
| | | | | | | | | | | | | |
Net income | | $ | 1,079 | | $ | 451 | | $ | 2,013 | | $ | 1,943 | |
| | | | | | | | | | | | | |
EARNINGS PER COMMON SHARE | | | | | | | | | | | | | |
Basic | | $ | 0.22 | | $ | 0.09 | | $ | 0.41 | | $ | 0.39 | |
Diluted | | $ | 0.22 | | $ | 0.09 | | $ | 0.41 | | $ | 0.39 | |
DIVIDENDS PER COMMON SHARE | | $ | 0.07 | | $ | 0.07 | | $ | 0.21 | | $ | 0.35 | |
4 | ||
| | Three months ended | | Nine months ended | | ||||||||
| | September 30, | | September 30, | | ||||||||
| | 2013 | | 2012 | | 2013 | | 2012 | | ||||
| | | | | | | | | | | | | |
Net income | | $ | 1,079 | | $ | 451 | | $ | 2,013 | | $ | 1,943 | |
| | | | | | | | | | | | | |
Other comprehensive income (loss), net of tax: | | | | | | | | | | | | | |
Unrealized holding (losses) gains on securities during the period, net of taxes of $(55), $(21) $(310) and $(49) for each respective period | | | (106) | | | (40) | | | (601) | | | (95) | |
| | | | | | | | | | | | | |
Comprehensive income | | $ | 973 | | $ | 411 | | $ | 1,412 | | $ | 1,848 | |
| | | | | | | | | | | | | |
Accumulated comprehensive loss | | $ | (1,687) | | $ | (1,015) | | $ | (1,687) | | $ | (1,015) | |
5 | ||
| | Nine months ended | | ||||
| | September 30, | | ||||
| | 2013 | | 2012 | | ||
Operating Activities | | | | | | | |
Net income | | $ | 2,013 | | $ | 1,943 | |
Items not requiring (providing) cash | | | | | | | |
Depreciation and amortization | | | 727 | | | 705 | |
Amortization of intangible asset | | | 89 | | | 89 | |
Expense related to share based compensation plans | | | 151 | | | 159 | |
Provision for loan losses | | | 1,013 | | | 769 | |
Provision for losses on foreclosed real estate | | | 230 | | | 78 | |
Increase in value of bank-owned life insurance | | | (1,193) | | | (282) | |
Amortization of discounts on securities, net | | | (23) | | | (50) | |
Originations of loans held for sale | | | (2,038) | | | (771) | |
Proceeds from sale of loans held for sale | | | 2,093 | | | 785 | |
Realized gains on sales of loans | | | (55) | | | (14) | |
Amortization of ESOP | | | 123 | | | 157 | |
Realized losses on sales of other real estate and repossessed assets | | | 15 | | | 6 | |
Amortization of mortgage servicing rights | | | 21 | | | 43 | |
Net change in accrued interest receivable and other assets | | | 511 | | | 219 | |
Net change in accrued expenses and other liabilities | | | (258) | | | (431) | |
| | | | | | | |
Net cash provided by operating activities | | | 3,419 | | | 3,405 | |
| | | | | | | |
Investing Activities | | | | | | | |
Securities available for sale: | | | | | | | |
Maturities, prepayments and calls | | | 24,104 | | | 92,246 | |
Purchases | | | (18,000) | | | (48,957) | |
Securities held to maturity: | | | | | | | |
Maturities, prepayments and calls | | | 490 | | | 955 | |
Net change in loans | | | (3,158) | | | (3,239) | |
Purchases of premises and equipment | | | (1,296) | | | (1,355) | |
Proceeds from sale of other real estate and repossessed assets | | | 128 | | | 467 | |
| | | | | | | |
Net cash provided by investing activities | | | 2,268 | | | 40,117 | |
6 | ||
| | Nine months ended | | ||||
| | September 30, | | ||||
| | 2013 | | 2012 | | ||
Financing Activities | | | | | | | |
Net change in deposits | | $ | (32,932) | | $ | 41,444 | |
Net change in short-term borrowings | | | (152) | | | 3,738 | |
Net change in long-term borrowings | | | (5,293) | | | (325) | |
Shares purchased for deferred compensation plan | | | | | | 53 | |
Treasury stock purchases | | | (70) | | | | |
Cash dividends paid on common stock | | | (1,130) | | | (1,877) | |
| | | | | | | |
Net cash provided by (used in) financing activities | | | (39,577) | | | 43,033 | |
| | | | | | | |
(Decrease)/Increase in Cash and Cash Equivalents | | | (33,890) | | | 86,555 | |
Cash and Cash Equivalents, Beginning of Period | | | 75,108 | | | 15,681 | |
| | | | | | | |
Cash and Cash Equivalents, End of Period | | $ | 41,218 | | $ | 102,236 | |
| | | | | | | |
Supplemental Cash Flows Information | | | | | | | |
Interest paid on deposits and borrowings | | $ | 2,421 | | $ | 3,015 | |
| | | | | | | |
Federal income taxes paid | | $ | 583 | | $ | 485 | |
| | | | | | | |
Supplemental Disclosure of Non-Cash Investing and Financing Activities | | | | | | | |
Transfers from loans to foreclosed assets held for sale | | $ | 830 | | $ | 462 | |
7 | ||
Note 1: | Summary of Significant Accounting Policies |
8 | ||
9 | ||
10 | ||
11 | ||
| | Three months ended September 30, | | Nine months ended September 30, | | ||||||||
| | 2013 | | 2012 | | 2013 | | 2012 | | ||||
| | (In thousands, except share and per share data) | | ||||||||||
| | | | | | | | | | | | | |
Basic | | | | | | | | | | | | | |
Net income | | $ | 1,079 | | $ | 451 | | $ | 2,013 | | $ | 1,943 | |
Dividends on non-vested restricted stock | | | (12) | | | (12) | | | (37) | | | (62) | |
Net income allocated to stockholders | | $ | 1,067 | | $ | 439 | | $ | 1,976 | | $ | 1,881 | |
Weighted average common shares outstanding | | | 4,804,957 | | | 4,784,815 | | | 4,805,811 | | | 4,778,577 | |
Basic earnings per common share | | $ | 0.22 | | $ | 0.09 | | $ | 0.41 | | $ | 0.39 | |
| | | | | | | | | | | | | |
Diluted | | | | | | | | | | | | | |
Net income allocated to stockholders | | $ | 1,067 | | $ | 439 | | $ | 1,976 | | $ | 1,881 | |
Weighted average common shares outstanding for basic earnings per common share | | | 4,804,957 | | | 4,784,815 | | | 4,805,811 | | | 4,778,577 | |
Add: Dilutive effects of assumed exercise of stock options and restricted stock | | | 59,664 | | | 69,826 | | | 59,664 | | | 70,602 | |
Average shares and dilutive potential common shares | | | 4,864,621 | | | 4,854,641 | | | 4,865,475 | | | 4,849,179 | |
| | | | | | | | | | | | | |
Diluted earnings per common share | | $ | 0.22 | | $ | 0.09 | | $ | 0.41 | | $ | 0.39 | |
12 | ||
Note 2: | Securities |
| | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Approximate Fair Value | | ||||
| | (In thousands) | | ||||||||||
Available-for-sale Securities: | | | | | | | | | | | | | |
September 30, 2013 | | | | | | | | | | | | | |
U.S. government agencies | | $ | 21,000 | | $ | | | $ | (626) | | $ | 20,374 | |
State and political subdivisions | | | 7,226 | | | 217 | | | | | | 7,443 | |
Equity securities | | | 4 | | | 23 | | | | | | 27 | |
| | | | | | | | | | | | | |
| | $ | 28,230 | | $ | 240 | | $ | (626) | | $ | 27,844 | |
Available-for-sale Securities: | | | | | | | | | | | | | |
December 31, 2012: | | | | | | | | | | | | | |
U.S. government agencies | | $ | 23,980 | | $ | 93 | | $ | (3) | | $ | 24,070 | |
State and political subdivisions | | | 10,345 | | | 414 | | | | | | 10,759 | |
Equity securities | | | 4 | | | 20 | | | | | | 24 | |
| | | | | | | | | | | | | |
| | $ | 34,329 | | $ | 527 | | $ | (3) | | $ | 34,853 | |
13 | ||
| | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Approximate Fair Value | | ||||
| | (In thousands) | | ||||||||||
Held-to-maturity Securities: | | | | | | | | | | | | | |
September 30, 2013: | | | | | | | | | | | | | |
State and political subdivisions | | $ | 2,294 | | $ | 26 | | $ | | | $ | 2,320 | |
| | | | | | | | | | | | | |
December 31, 2012: | | | | | | | | | | | | | |
State and political subdivisions | | $ | 2,768 | | $ | 72 | | $ | | | $ | 2,840 | |
| | Available-for-sale | | Held-to-maturity | | ||||||||
| | Amortized Cost | | Fair Value | | Amortized Cost | | Fair Value | | ||||
| | (In thousands) | | ||||||||||
| | | | | | | | | | | | | |
Within one year | | $ | 739 | | $ | 741 | | $ | 1,340 | | $ | 1,347 | |
One to five years | | | 4,693 | | | 4,780 | | | 954 | | | 973 | |
Five to ten years | | | 16,794 | | | 16,466 | | | | | | | |
After ten years | | | 6,000 | | | 5,830 | | | | | | | |
| | | | | | | | | | | | | |
Equity securities | | | 4 | | | 27 | | | | | | | |
| | | | | | | | | | | | | |
Totals | | $ | 28,230 | | $ | 27,844 | | $ | 2,294 | | $ | 2,320 | |
14 | ||
September 30, 2013 | | ||||||||||||||||||
| | Less than 12 Months | | 12 Months or More | | Total | | ||||||||||||
Description of Securities | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | | ||||||
(In thousands) | | ||||||||||||||||||
| | | | | | | | | | | | | | | | | | | |
U.S. Government agencies | | $ | | | $ | | | $ | 20,373 | | $ | (626) | | $ | 20,373 | | $ | (626) | |
December 31, 2012 | | ||||||||||||||||||
| | | Less than 12 Months | | | | | | 12 Months or More | | | | | | Total | | | | |
Description of Securities | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | | ||||||
(In thousands) | | ||||||||||||||||||
| | | | | | | | | | | | | | | | | | | |
U.S. Government agencies | | $ | 2,997 | | $ | (3) | | $ | | | $ | | | $ | 2,997 | | $ | (3) | |
15 | ||
| | September 30, | | December 31, | | ||
| | 2013 | | 2012 | | ||
| | (In thousands) | | ||||
| | | | | | | |
Commercial loans | | $ | 53,993 | | $ | 47,130 | |
Commercial real estate | | | 136,225 | | | 144,144 | |
Residential real estate | | | 80,282 | | | 73,623 | |
Installment loans | | | 27,609 | | | 31,585 | |
| | | | | | | |
Total gross loans | | | 298,109 | | | 296,482 | |
| | | | | | | |
Less allowance for loan losses | | | (2,965) | | | (2,708) | |
| | | | | | | |
Total loans | | $ | 295,144 | | $ | 293,774 | |
16 | ||
| | Commercial | | Commercial Real Estate | | Installment | | Residential | | Unallocated | | Total | | ||||||
(In thousands) | | ||||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Balance, July 1, 2013 | | $ | 1,191 | | $ | 1,213 | | $ | 181 | | $ | 120 | | $ | 563 | | $ | 3,268 | |
Provision charged to expense | | | (272) | | | 560 | | | 93 | | | 48 | | | (75) | | | 354 | |
Losses charged off | | | (520) | | | (10) | | | (110) | | | (44) | | | | | | (684) | |
Recoveries | | | | | | 4 | | | 21 | | | 2 | | | | | | 27 | |
| | | | | | | | | | | | | | | | | | | |
Balance, September 30, 2013 | | $ | 399 | | $ | 1,767 | | $ | 185 | | $ | 126 | | $ | 488 | | $ | 2,965 | |
| | | | | | | | | | | | | | | | | | | |
Balance, January 1, 2013 | | $ | 598 | | $ | 1,347 | | $ | 200 | | $ | 116 | | $ | 447 | | $ | 2,708 | |
Provision charged to expense | | | 319 | | | 456 | | | 131 | | | 66 | | | 41 | | | 1,013 | |
Losses charged off | | | (520) | | | (47) | | | (271) | | | (59) | | | | | | (897) | |
Recoveries | | | 2 | | | 11 | | | 125 | | | 3 | | | | | | 141 | |
| | | | | | | | | | | | | | | | | | | |
Balance, September 30, 2013 | | $ | 399 | | $ | 1,767 | | $ | 185 | | $ | 126 | | $ | 488 | | $ | 2,965 | |
| | | | | | | | | | | | | | | | | | | |
Ending balance: individually evaluated for impairment | | $ | 244 | | $ | 1,376 | | $ | | | $ | | | $ | | | $ | 1,620 | |
| | | | | | | | | | | | | | | | | | | |
Ending balance: collectively evaluated for impairment | | $ | 155 | | $ | 391 | | $ | 185 | | $ | 126 | | $ | 488 | | $ | 1,345 | |
| | | | | | | | | | | | | | | | | | | |
Loans: | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Ending balance: individually evaluated for impairment | | $ | 609 | | $ | 6,103 | | $ | | | $ | | | $ | | | $ | 6,712 | |
| | | | | | | | | | | | | | | | | | | |
Ending balance: collectively evaluated for impairment | | $ | 53,384 | | $ | 130,122 | | $ | 27,609 | | $ | 80,282 | | $ | | | $ | 291,397 | |
17 | ||
| | Commercial | | Commercial Real Estate | | Installment | | Residential | | Unallocated | | Total | | ||||||
| | | | | | | | | | | | | | | | | | | |
| | (In thousands) | | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | |
Balance, July 1, 2012 | | $ | 418 | | $ | 1,622 | | $ | 226 | | $ | 99 | | $ | 284 | | $ | 2,649 | |
Provision charged to expense | | | 46 | | | 168 | | | 43 | | | 67 | | | (56) | | | 268 | |
Losses charged off | | | (67) | | | (49) | | | (86) | | | (55) | | | | | | (257) | |
Recoveries | | | 83 | | | 7 | | | 22 | | | 1 | | | | | | 113 | |
| | | | | | | | | | | | | | | | | | | |
Balance, September 30, 2012 | | $ | 480 | | $ | 1,748 | | $ | 205 | | $ | 112 | | $ | 228 | | $ | 2,773 | |
| | | | | | | | | | | | | | | | | | | |
Balance, January 1, 2012 | | $ | 183 | | $ | 2,321 | | $ | 235 | | $ | 95 | | $ | 87 | | $ | 2,921 | |
Provision charged to expense | | | 275 | | | 222 | | | 33 | | | 98 | | | 141 | | | 769 | |
Losses charged off | | | (67) | | | (804) | | | (206) | | | (84) | | | | | | (1,161) | |
Recoveries | | | 89 | | | 9 | | | 143 | | | 3 | | | | | | 244 | |
| | | | | | | | | | | | | | | | | | | |
Balance, September 30, 2012 | | $ | 480 | | $ | 1,748 | | $ | 205 | | $ | 112 | | $ | 228 | | $ | 2,773 | |
| | Commercial | | Commercial Real Estate | | Installment | | Residential | | Unallocated | | Total | | ||||||
| | (In thousands) | | ||||||||||||||||
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Ending balance: individually evaluated for impairment | | $ | 458 | | $ | 916 | | $ | | | $ | | | $ | | | $ | 1,374 | |
| | | | | | | | | | | | | | | | | | | |
Ending balance: collectively evaluated for impairment | | $ | 140 | | $ | 431 | | $ | 200 | | $ | 116 | | $ | 447 | | $ | 1,334 | |
| | | | | | | | | | | | | | | | | | | |
Loans: | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Ending balance: individually evaluated for impairment | | $ | 1,015 | | $ | 5,943 | | $ | | | $ | | | $ | | | $ | 6,958 | |
| | | | | | | | | | | | | | | | | | | |
Ending balance: collectively evaluated for impairment | | $ | 46,115 | | $ | 138,201 | | $ | 31,585 | | $ | 73,623 | | $ | | | $ | 289,524 | |
18 | ||
| | September 30, 2013 | | |||||||||||||
Loan Class | | Commercial | | Commercial Real Estate | | Residential | | Installment | | Total | | |||||
| | (In thousands) | | |||||||||||||
Pass Grade | | $ | 50,642 | | $ | 125,959 | | $ | 80,282 | | $ | 27,609 | | $ | 284,492 | |
Special Mention | | | 2,724 | | | 3,906 | | | | | | | | | 6,630 | |
Substandard | | | 627 | | | 6,360 | | | | | | | | | 6,987 | |
Doubtful | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | $ | 53,993 | | $ | 136,225 | | $ | 80,282 | | $ | 27,609 | | $ | 298,109 | |
| | December 31, 2012 | | |||||||||||||
Loan Class | | Commercial | | Commercial Real Estate | | Residential | | Installment | | Total | | |||||
| | (In thousands) | | |||||||||||||
Pass Grade | | $ | 43,364 | | $ | 133,402 | | $ | 73,623 | | $ | 31,585 | | $ | 281,974 | |
Special Mention | | | 2,698 | | | 3,005 | | | | | | | | | 5,703 | |
Substandard | | | 1,068 | | | 7,737 | | | | | | | | | 8,805 | |
Doubtful | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | $ | 47,130 | | $ | 144,144 | | $ | 73,623 | | $ | 31,585 | | $ | 296,482 | |
19 | ||
| | 30-59 Days Past Due and Accruing | | 60-89 Days Past Due and Accruing | | Greater Than 90 Days and Accruing | | Non Accrual | | Total Past Due and Non Accrual | | Current | | Total Loans Receivable | | |||||||
| | (In thousands) | | |||||||||||||||||||
Commercial | | $ | 427 | | $ | 3 | | $ | 84 | | $ | 320 | | $ | 834 | | $ | 53,159 | | $ | 53,993 | |
Commercial real estate | | | 217 | | | | | | 105 | | | 760 | | | 1,082 | | | 135,143 | | | 136,225 | |
Installment | | | 92 | | | 55 | | | | | | 85 | | | 232 | | | 25,662 | | | 27,609 | |
Residential | | | 281 | | | 17 | | | | | | 1,649 | | | 1,947 | | | 80,050 | | | 80,282 | |
| | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 1,017 | | $ | 75 | | $ | 189 | | $ | 2,814 | | $ | 4,095 | | $ | 294,014 | | $ | 298,109 | |
| | 30-59 Days Past Due and Accruing | | 60-89 Days Past Due and Accruing | | Greater Than 90 Days and Accruing | | Non Accrual | | Total Past Due and Non Accrual | | Current | | Total Loans Receivable | | |||||||
| | (In thousands) | | |||||||||||||||||||
Commercial | | $ | 144 | | $ | | | $ | 84 | | $ | 541 | | $ | 769 | | $ | 46,361 | | $ | 47,130 | |
Commercial real estate | | | 87 | | | | | | | | | 1,114 | | | 1,201 | | | 142,943 | | | 144,144 | |
Installment | | | 189 | | | 11 | | | | | | 41 | | | 241 | | | 73,382 | | | 73,623 | |
Residential | | | 1,088 | | | 91 | | | | | | 1,564 | | | 2,743 | | | 28,842 | | | 31,585 | |
| | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 1,508 | | $ | 102 | | $ | 84 | | $ | 3,260 | | $ | 4,954 | | $ | 291,528 | | $ | 296,482 | |
20 | ||
| | As of September 30, 2013 | | For the three months ended September 30, 2013 | | For the nine months ended September 30, 2013 | | |||||||||||||||
| | Recorded Balance | | Unpaid Principal Balance | | Specific Allowance | | Average Investment in Impaired Loans | | Interest Income Recognized | | Average Investment in Impaired Loans | | Interest Income Recognized | | |||||||
| | (In thousands) | | |||||||||||||||||||
Loans without a specific valuation allowance: | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 84 | | $ | 84 | | $ | | | $ | 84 | | $ | | | $ | 84 | | $ | 1 | |
Commercial real estate | | | 1,074 | | | 1,086 | | | | | | 1,076 | | | 21 | | | 1,155 | | | 49 | |
Residential | | | | | | | | | | | | | | | | | | | | | | |
Installment | | | | | | | | | | | | | | | | | | | | | | |
| | | 1,158 | | | 1,170 | | | | | | 1,160 | | | 21 | | | 1,239 | | | 50 | |
| | | | | | | | | | | | | | | | | | | | | | |
Loans with a specific valuation allowance: | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 525 | | | 525 | | | 244 | | | 498 | | | 17 | | | 510 | | | 23 | |
Commercial real estate | | | 5,029 | | | 5,029 | | | 1,376 | | | 5,173 | | | 43 | | | 5,237 | | | 169 | |
Residential | | | | | | | | | | | | | | | | | | | | | | |
Installment | | | | | | | | | | | | | | | | | | | | | | |
| | | 5,554 | | | 5,554 | | | 1,620 | | | 5,671 | | | 60 | | | 5,747 | | | 192 | |
| | | | | | | | | | | | | | | | | | | | | | |
Total: | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 609 | | $ | 609 | | $ | 244 | | $ | 582 | | $ | 17 | | $ | 594 | | $ | 24 | |
Commercial real estate | | $ | 6,103 | | $ | 6,115 | | $ | 1,376 | | $ | 6,249 | | $ | 64 | | $ | 6,392 | | $ | 218 | |
Residential | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | |
Installment | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | |
21 | ||
| | As of December 31, 2012 | | For the three months ended September 30, 2012 | | For the nine months ended September 30, 2012 | | |||||||||||||||
| | Recorded Balance | | Unpaid Principal Balance | | Specific Allowance | | Average Investment in Impaired Loans | | Interest Income Recognized | | Average Investment in Impaired Loans | | Interest Income Recognized | | |||||||
| | (In thousands) | | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
Loans without a specific valuation allowance: | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 361 | | $ | 361 | | $ | | | $ | 393 | | $ | 5 | | $ | 445 | | $ | 23 | |
Commercial real estate | | | 1,546 | | | 1,546 | | | | | | 2,160 | | | 78 | | | 2,404 | | | 164 | |
Residential | | | | | | | | | | | | 19 | | | | | | 19 | | | | |
Installment | | | | | | | | | | | | | | | | | | | | | | |
| | | 1,907 | | | 1,907 | | | | | | 2,572 | | | 83 | | | 2,868 | | | 187 | |
| | | | | | | | | | | | | | | | | | | | | | |
Loans with a specific valuation allowance: | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | | 654 | | | 654 | | | 458 | | | 664 | | | | | | 545 | | | 11 | |
Commercial real estate | | | 4,397 | | | 4,397 | | | 916 | | | 4,362 | | | 8 | | | 4,651 | | | 107 | |
Residential | | | | | | | | | | | | 40 | | | | | | 40 | | | | |
Installment | | | | | | | | | | | | | | | | | | | | | | |
| | | 5,051 | | | 5,051 | | | 1,374 | | | 5,066 | | | 8 | | | 5,236 | | | 118 | |
| | | | | | | | | | | | | | | | | | | | | | |
Total: | | | | | | | | | | | | | | | | | | | | | | |
Commercial | | $ | 1,015 | | $ | 1,015 | | $ | 458 | | $ | 1,057 | | $ | 5 | | $ | 990 | | $ | 34 | |
Commercial real estate | | $ | 5,943 | | $ | 5,943 | | $ | 916 | | $ | 6,522 | | $ | 86 | | $ | 7,055 | | $ | 271 | |
Residential | | $ | | | $ | | | $ | | | $ | 59 | | $ | | | $ | 59 | | $ | | |
Installment | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | | $ | | |
22 | ||
| | Three Months ended September 30, 2013 | | ||||||
| | Number of Contracts | | Pre- Modification Outstanding Recorded Investment | | Post-Modification Outstanding Recorded Investment | | ||
| | (In thousands) | | ||||||
| | | | | | | | | |
Commercial | | | | $ | | | $ | | |
Commercial real estate | | 2 | | | 2,887 | | | 2,887 | |
Residential | | | | | | | | | |
Installment | | | | | | | | | |
| | Three Months ended September 30, 2013 | | ||||||||||
| | Interest Only | | Term | | Combination | | Total Modification | | ||||
| | (In thousands) | | ||||||||||
| | | | | | | | | | | | | |
Commercial | | $ | | | $ | | | $ | | | $ | | |
Commercial real estate | | | | | | 2,887 | | | | | | 2,887 | |
Residential | | | | | | | | | | | | | |
Consumer | | | | | | | | | | | | | |
| | Nine Months ended September 30, 2013 | | ||||||
| | Number of Contracts | | Pre- Modification Outstanding Recorded Investment | | Post-Modification Outstanding Recorded Investment | | ||
| | (In thousands) | | ||||||
| | | | | | | | | |
Commercial | | | | $ | | | $ | | |
Commercial real estate | | 3 | | | 3,320 | | | 3,320 | |
Residential | | | | | | | | | |
Installment | | | | | | | | | |
| | Nine Months Ended September 30, 2013 | | ||||||||||
| | Interest Only | | Term | | Combination | | Total Modification | | ||||
| | (In thousands) | | ||||||||||
| | | | | | | | | | | | | |
Commercial | | $ | | | $ | | | $ | | | $ | | |
Commercial real estate | | | | | | 3,320 | | | | | | 3,320 | |
Residential | | | | | | | | | | | | | |
Consumer | | | | | | | | | | | | | |
23 | ||
| | Three Months ended September 30, 2012 | | ||||||
| | Number of Contracts | | Pre- Modification Outstanding Recorded Investment | | Post-Modification Outstanding Recorded Investment | | ||
| | (In thousands) | | ||||||
| | | | | | | | | |
Commercial | | 3 | | $ | 152 | | $ | 66 | |
Commercial real estate | | | | | | | | | |
Residential | | | | | | | | | |
Installment | | | | | | | | | |
| | | Three Months Ended September 30, 2012 | | |||||||||
| | | Interest Only | | Term | | Combination | | Total Modification | | |||
| | | (In thousands) | | |||||||||
| | | | | | | | | | | | | |
Commercial | | $ | | | $ | | | $ | 66 | | $ | 66 | |
Commercial real estate | | | | | | | | | | | | | |
Residential | | | | | | | | | | | | | |
Consumer | | | | | | | | | | | | | |
| | Nine Months ended September 30, 2012 | | ||||||
| | Number of Contracts | | Pre- Modification Outstanding Recorded Investment | | Post-Modification Outstanding Recorded Investment | | ||
| | (In thousands) | | ||||||
| | | | | | | | | |
Commercial | | 3 | | $ | 152 | | $ | 66 | |
Commercial real estate | | 2 | | | 74 | | | 16 | |
Residential | | | | | | | | | |
Installment | | | | | | | | | |
| | Nine Months Ended September 30, 2012 | | ||||||||||
| | Interest Only | | Term | | Combination | | Total Modification | | ||||
| | (In thousands) | | ||||||||||
| | | | | | | | | | | | | |
Commercial | | $ | | | $ | | | $ | 66 | | $ | 66 | |
Commercial real estate | | | | | | 16 | | | | | | 16 | |
Residential | | | | | | | | | | | | | |
Consumer | | | | | | | | | | | | | |
24 | ||
Note 4: | Benefit Plans |
| | Three months ended September 30, | | Nine months ended September 30, | | ||||||||
| | 2013 | | 2012 | | 2013 | | 2012 | | ||||
| | (In thousands) | | ||||||||||
| | | | | | | | | | | | | |
Service cost | | $ | 90 | | $ | 89 | | $ | 270 | | $ | 267 | |
Interest cost | | | 41 | | | 45 | | | 123 | | | 135 | |
Expected return on assets | | | (64) | | | (57) | | | (192) | | | (171) | |
Amortization of prior service cost and net loss | | | 43 | | | 43 | | | 129 | | | 129 | |
| | | | | | | | | | | | | |
Pension expense | | $ | 110 | | $ | 120 | | $ | 330 | | $ | 360 | |
Note 5: | Off-balance-sheet Activities |
| | September 30, | | December 31, | | ||
| | 2013 | | 2012 | | ||
| | (In thousands) | | ||||
| | | | | | | |
Commercial loans unused lines of credit | | $ | 12,429 | | $ | 12,987 | |
Commitment to originate loans | | | 7,512 | | | 7,816 | |
Consumer open end lines of credit | | | 35,048 | | | 32,419 | |
Standby letters of credit | | | 150 | | | 150 | |
25 | ||
Note 6: | Accumulated Other Comprehensive Loss |
| | September 30, 2013 | | December 31, 2012 | | ||
| | (In thousands) | | ||||
| | | | | | | |
Net unrealized gain on securities available-for-sale | | $ | (386) | | $ | 524 | |
Net unrealized loss for unfunded status of defined benefit plan liability | | | (2,169) | | | (2,169) | |
| | | | | | | |
| | | (2,555) | | | (1,645) | |
Tax effect | | | 868 | | | 558 | |
| | | | | | | |
Net-of-tax amount | | $ | (1,687) | | $ | (1,087) | |
Note 7: | Fair Value Measurements |
| Level 1 | Quoted prices in active markets for identical assets or liabilities |
| | |
| Level 2 | |
| | |
| Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities |
26 | ||
| | | | | Fair Value Measurements Using | | |||||||
| | Fair Value | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | |
| | | (In thousands) | | |||||||||
| | | | | | | | | | | | | |
September 30, 2013 | | | | | | | | | | | | | |
U.S. government agencies | | $ | 20,374 | | $ | | | $ | 20,374 | | $ | | |
State and political subdivisions | | | 7,443 | | | | | | 7,443 | | | | |
Equity securities | | | 27 | | | 27 | | | | | | | |
| | | | | | | | | | | | | |
December 31, 2012 | | | | | | | | | | | | | |
U.S. government agencies | | $ | 24,070 | | $ | | | $ | 24,070 | | $ | | |
State and political subdivisions | | | 10,759 | | | | | | 10,759 | | | | |
Equity securities | | | 24 | | | 24 | | | | | | | |
27 | ||
28 | ||
| | | | | Fair Value Measurements Using | | |||||||
| | Fair Value | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | ||||
| | (In thousands) | | ||||||||||
September 30, 2013 | | | | | | | | | | | | | |
Collateral dependent impaired loans | | $ | 1,113 | | $ | | | $ | | | $ | 1,113 | |
Foreclosed assets held for sale | | | 736 | | | | | | | | | 736 | |
| | | | | | | | | | | | | |
December 31, 2012 | | | | | | | | | | | | | |
Collateral dependent impaired loans | | $ | 3,573 | | $ | | | $ | | | $ | 3,573 | |
Foreclosed assets held for sale | | | 736 | | | | | | | | | 736 | |
| | Fair Value at 9/30/13 | | Valuation Technique | | Unobservable Inputs | | Range | | |
| | (In thousands) | | |||||||
| | | | | | | | | | |
Foreclosed assets held for sale | | $ | 736 | | Market comparable properties | | Selling costs | | 10% 15% | |
| | | | | | | | | | |
Collateral-dependent impaired loans | | $ | 1,113 | | Market comparable properties | | Marketability discount | | 10% 35% | |
| | Fair Value at 12/31/12 | | Valuation Technique | | Unobservable Inputs | | Range | | |
| | (In thousands) | | |||||||
| | | | | | | | | | |
Foreclosed assets held for sale | | $ | 736 | | Market comparable properties | | Selling costs | | 10% 15% | |
| | | | | | | | | | |
Collateral-dependent impaired loans | | | 3,573 | | Market comparable properties | | Marketability discount | | 10% 35% | |
29 | ||
| | | | | | Fair Value Measurements Using | | ||||||
| | | Carrying Amount | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | |
| | | (In thousands) | | |||||||||
September 30, 2013 | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Financial assets | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 41,218 | | $ | 41,218 | | $ | | | $ | | |
Held-to-maturity securities | | | 2,294 | | | | | | 2,320 | | | | |
Loans, net of allowance | | | 295,114 | | | | | | | | | 295,109 | |
Federal Home Loan Bank stock | | | 4,810 | | | | | | 4,810 | | | | |
Accrued interest receivable | | | 997 | | | | | | 997 | | | | |
| | | | | | | | | | | | | |
Financial liabilities | | | | | | | | | | | | | |
Deposits | | | 317,484 | | | | | | 306,582 | | | | |
Short term borrowings | | | 10,529 | | | | | | 10,529 | | | | |
Federal Home Loan Bank Advances | | | 27,146 | | | | | | 29,295 | | | | |
Subordinated debentures | | | 4,000 | | | | | | 3,712 | | | | |
Interest payable | | | 147 | | | | | | 147 | | | | |
30 | ||
| | | | | Fair Value Measurements Using | | |||||||
| | Carrying Amount | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3) | | ||||
| | (In thousands) | | ||||||||||
December 31, 2012: | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Financial assets | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 75,108 | | $ | 75,108 | | $ | | | $ | | |
Held-to-maturity securities | | | 2,768 | | | | | | 2,840 | | | | |
Loans, net of allowance | | | 293,774 | | | | | | | | | 295,134 | |
Federal Home Loan Bank stock | | | 4,810 | | | | | | 4,810 | | | | |
Accrued interest receivable | | | 1,076 | | | | | | 1,076 | | | | |
| | | | | | | | | | | | | |
Financial liabilities | | | | | | | | | | | | | |
Deposits | | | 350,416 | | | | | | 346,761 | | | | |
Short term borrowings | | | 10,681 | | | | | | 10,681 | | | | |
Federal Home Loan Bank Advances | | | 32,439 | | | | | | 35,649 | | | | |
Subordinated debentures | | | 4,000 | | | | | | 3,712 | | | | |
Interest payable | | | 193 | | | | | | 193 | | | | |
31 | ||
32 | ||
33 | ||
34 | ||
35 | ||
36 | ||
37 | ||
38 | ||
39 | ||
| | Total | | | Tier 1 | | | Tier 1 | | |
| | Capital To | | | Capital To | | | Capital To | | |
| | Risk-Weighted | | | Risk-Weighted | | | Average | | |
| | Assets | | | Assets | | | Assets | | |
| | | | | | | | | | |
Well capitalized | | 10.00 | % | | 6.00 | % | | 5.00 | % | |
Adequately capitalized | | 8.00 | % | | 4.00 | % | | 4.00 | % | |
Undercapitalized | | 6.00 | % | | 3.00 | % | | 3.00 | % | |
40 | ||
| September 30, | | | |
| 2013 | | | |
| (Dollars in thousands) | | | |
| | | | |
Tier 1 capital | $ | 42,575 | | |
Total risk-based capital | | 45,550 | | |
Risk-weighted assets | | 296,078 | | |
Average total assets | | 423,146 | | |
| | | | |
Total risk-based capital ratio | | 15.38 | % | |
Tier 1 risk-based capital ratio | | 14.38 | % | |
Tier 1 capital to average assets | | 10.06 | % | |
ITEM 3 | Quantitative and Qualitative Disclosures About Market Risk |
41 | ||
ITEM 4. | Controls and Procedures |
42 | ||
ITEM 1. | Legal Proceedings |
ITEM 1A. | Risk Factors |
ITEM 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period | | (a) Total Number of Shares (or Units) Purchased | | (b) Average Price Paid Per Share (or Unit) | | (c) Total Number of Shares (or Units) Purchased as Part Of Publicly Announced Plans Or Programs | | (d) Maximum Number or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs | |
Month #1 | | | | | | | | | |
7/1/2013 to | | | | | | | | | |
7/31/2013 | | | | | | | | | |
Month #2 | | | | | | | | | |
8/1/2013 to | | | | | | | | | |
8/31/2013 | | | | | | | | | |
Month #3 | | | | | | | | | |
9/1/2013 to | | | | | | | | | |
9/30/2013 | | | | | | | | | |
ITEM 3. | Defaults Upon Senior Securities |
43 | ||
ITEM 4. | Mine Safety Disclosures |
ITEM 5. | Exhibits |
44 | ||
| /s/United Bancorp, Inc. | |
| | |
Date: November 14, 2013 | By: | /s/James W. Everson |
| | James W. Everson |
| | Chairman, President and Chief |
| | Executive Officer |
| | |
Date: November 14, 2013 | By: | /s/Randall M. Greenwood |
| | Randall M. Greenwood |
| | Senior Vice President, Chief Financial |
| | Officer and Treasurer |
45 | ||
Exhibit No. | | Description |
| | |
31.1 | | Rule 13a-14(a) Certification Principal Executive Officer |
| | |
31.2 | | Rule 13a-14(a) Certification Principal Financial Officer |
| | |
32.1 | | Certification pursuant to 18 U.S.C. Section 1350, as enacted pursuant to Section 906 of The Sarbanes-Oxley act of 2002. |
| | |
| Certification pursuant to 18 U.S.C. Section 1350, as enacted pursuant to Section 906 of The Sarbanes-Oxley Act of 2002. |
46 | ||
1. | I have reviewed this Form 10-Q of United Bancorp, Inc.; |
| |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
| |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
| |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
| (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
| |
| (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
| |
| (c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
| |
| (d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
| Date: November 14, 2013 | /s/James W. Everson | |
| | James W. Everson, Chairman, President and CEO |
| (b) | I have reviewed this Form 10-Q of United Bancorp, Inc.; |
Date: November 14, 2013 | /s/Randall M. Greenwood | |
| Randall M. Greenwood, CFO |
/s/James W. Everson | | |
James W. Everson, | | |
Chairman, President and Chief Executive Officer | | |
| | |
November 14, 2013 | | |
/s/Randall M. Greenwood | | |
Randall M. Greenwood, | | |
Chief Financial Officer | | |
| | |
November 14, 2013 | | |
Securities (Tables)
|
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2013
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Trading Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost and Approximate Fair Values, Together with Gross Unrealized Gains and Losses of Securities | The amortized cost and approximate fair values, together with gross unrealized gains and losses of securities are as follows:
|
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Amortized Cost and Fair Value of Available-for-Sale Securities and Held-to-Maturity Securities, by Contractual Maturity | The amortized cost and fair value of available-for-sale securities and held-to-maturity securities at September 30, 2013, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
|
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Investments' Gross Unrealized Losses and Fair Value, Aggregated by Investment Category and Length of Time that Individual Securities have been in Continuous Unrealized Loss Position | The following tables show the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2013 and December 31, 2012:
|
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